Over Paying A Mortgage

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Brian Griffin

Brian Griffin

Striker
This might seem like an odd question, but is there a best time of the month to do this?

Mortgage seems to be calculated and added monthly (amount varies by a few £ each month - so possibly calculated daily, longer months mean larger payment) - my payment comes out and interest added on the same day.

Cheers in advance.
 


Brian Griffin said:
This might seem like an odd question, but is there a best time of the month to do this?

Mortgage seems to be calculated and added monthly (amount varies by a few £ each month - so possibly calculated daily, longer months mean larger payment) - my payment comes out and interest added on the same day.

Cheers in advance.
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Calculated daily and added monthly shirley?
 
Brian Griffin said:
This might seem like an odd question, but is there a best time of the month to do this?

Mortgage seems to be calculated and added monthly (amount varies by a few £ each month - so possibly calculated daily, longer months mean larger payment) - my payment comes out and interest added on the same day.

Cheers in advance.
Click to expand...
Speak to your mortgage company. I can't overpay a certain time before the direct debits due or it'll fuck up the calculation. I also need to pay minimum amount or it becomes payment reducing & not term reducing.
 
Someone told me years ago the 1st of the month. I had an endowment so there was no advantage to me doing it anyway.
 
Brian Griffin said:
This might seem like an odd question, but is there a best time of the month to do this?

Mortgage seems to be calculated and added monthly (amount varies by a few £ each month - so possibly calculated daily, longer months mean larger payment) - my payment comes out and interest added on the same day.

Cheers in advance.
Click to expand...

If you contact your mortgage provider you can find out how much you can overpay each month without incurring a fee.
They'll also tell you how much you can overpay before your product ends without incurring a fee.

We're with TESCO Mortgages and they kindly let you overpay by an amount each year, rather than having to wait until the end of your product.

When I had a mortgage on my flat I used to overpay each month. It financially sunk me a bit, but it was so worth it.
 
Brian Griffin said:
This might seem like an odd question, but is there a best time of the month to do this?

Mortgage seems to be calculated and added monthly (amount varies by a few £ each month - so possibly calculated daily, longer months mean larger payment) - my payment comes out and interest added on the same day.

Cheers in advance.
Click to expand...

Oh, look at me, I know the difference between days and months. Pathetic
 
Brian Griffin said:
Yes but I'm sure I read somewhere that on some accounts interest is only added yearly - so there was a right time to over pay.
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Ours is with Nationwide and they calculate interest daily, but it only gets added back to the balance yearly. Others are obviously different.
 
Longy said:
Speak to your mortgage company. I can't overpay a certain time before the direct debits due or it'll fuck up the calculation. I also need to pay minimum amount or it becomes payment reducing & not term reducing.
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Do you know what that mininum amount is? I was going to start overpaying soon but will only be £100 extra for the next 2 years or so.
 
No
Keawyeds said:
No penalties?
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We are allowed to overpay.....i specifically wanted that when i took it out with brittania at the time.
The rates dropped and dropped but i kept paying the same so its about double each month....theyre dropping the amount each year to keep it at 25yr but i still pay the full amount. Gotta be worth it if you can afford it.
 
I bung couple hundred quid every week off mine

if it gets to end of month and getting skint I knock it on head for a week or two. if I'm flush a few months I'll up it to 3-400 extra a week off the mortgage

FIVE said:
No

We are allowed to overpay.....i specifically wanted that when i took it out with brittania at the time.
The rates dropped and dropped but i kept paying the same so its about double each month....theyre dropping the amount each year to keep it at 25yr but i still pay the full amount. Gotta be worth it if you can afford it.
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I did that and cleared one out in no time

I had a set amount I paid every monththat was above the amount needed. when it dropped always kept that same amount. if it went up kept the same amount. Just became used to it going out
 
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